BPA ADVANCED ACCOUNTING STUDY GUIDE
Asset - Answers - Anything of value that is owned
Liability - Answers - An amount owed by a business
Equities - Answers - Finanical rights to the assets of a business
Owner's Equity - Answers - Value of Assets subtracted by Value of Liabilities
Accounting Equation - Answers - Assets = Liabilities + Owner's Equity
Source documents - Answers - business papers from which information is obtained for a
journal entry
Double-entry accounting - Answers - The recording of debit and credit parts of a
transaction
Journal - Answers - A form for recording transactions in chronological order
Special journal - Answers - a journal used to record only one kind of transaction
Account - Answers - A record that summarizes all the transactions pertaining to a single
item in the accounting equation
Ledger - Answers - A group of accounts
General ledger - Answers - A ledger that contains all accounts needed to prepare
financial statements
Subsidary ledger - Answers - a ledger that is summarized in a single general ledger
account
Controlling account - Answers - an account in a general ledger that summarizes all
accounts in a subsidiary ledger
File maintenance - Answers - The procedure for arranging accounts in a general ledger,
assigning account numbers, and keeping records current
Department accounting system - Answers - an accounting system showing accounting
information for two or more departments
Merchandising business - Answers - A business that purchases and sells goods
, Posting - Answers - transferring information from a journal entry to a ledger account
Debit memorandum - Answers - a form prepared by the customer showing the price
deduction taken by the customer for returns and allowances
Contra account - Answers - an account that reduces a related account on a financial
statement
Cash discount - Answers - A deduction that a vendor allows on the invoice amount to
encourage prompt payment
Petty cash - Answers - an amount of cash kept on hand and used for making small
payments
Credit memorandum - Answers - A form prepared by the vendor showing the amount
deducted for returns and allowances
Sales discount - Answers - A cash discount on sales taken by a customer
point-of-sale terminal - Answers - a computer used to collect, store, and report all the
information of a sales transaction
Terminal summary - Answers - The report that summarizes the cash and credit card
sales of a point-of-sale terminal
Wage - Answers - The amount paid to an employee for every hour worked
Salary - Answers - A fixed amount of money paid to an employee for each pay period
Payroll - Answers - The total amount earned by all employees for a pay period
Withholding allowance - Answers - a deduction from total earnings for each person
legally supported by a taxpayer, including the employee
Tax base - Answers - The maximum amount of earnings on which a tax is calculated
Payroll register - Answers - An accounting form that summarizes the earnings,
deductions, and net pay of all employees for one pay period
Employee earnings record - Answers - A business form used to record details of an
employee's earnings and deductions
Automatic check deposit - Answers - Depositing payroll checks directly to a bank
account
Asset - Answers - Anything of value that is owned
Liability - Answers - An amount owed by a business
Equities - Answers - Finanical rights to the assets of a business
Owner's Equity - Answers - Value of Assets subtracted by Value of Liabilities
Accounting Equation - Answers - Assets = Liabilities + Owner's Equity
Source documents - Answers - business papers from which information is obtained for a
journal entry
Double-entry accounting - Answers - The recording of debit and credit parts of a
transaction
Journal - Answers - A form for recording transactions in chronological order
Special journal - Answers - a journal used to record only one kind of transaction
Account - Answers - A record that summarizes all the transactions pertaining to a single
item in the accounting equation
Ledger - Answers - A group of accounts
General ledger - Answers - A ledger that contains all accounts needed to prepare
financial statements
Subsidary ledger - Answers - a ledger that is summarized in a single general ledger
account
Controlling account - Answers - an account in a general ledger that summarizes all
accounts in a subsidiary ledger
File maintenance - Answers - The procedure for arranging accounts in a general ledger,
assigning account numbers, and keeping records current
Department accounting system - Answers - an accounting system showing accounting
information for two or more departments
Merchandising business - Answers - A business that purchases and sells goods
, Posting - Answers - transferring information from a journal entry to a ledger account
Debit memorandum - Answers - a form prepared by the customer showing the price
deduction taken by the customer for returns and allowances
Contra account - Answers - an account that reduces a related account on a financial
statement
Cash discount - Answers - A deduction that a vendor allows on the invoice amount to
encourage prompt payment
Petty cash - Answers - an amount of cash kept on hand and used for making small
payments
Credit memorandum - Answers - A form prepared by the vendor showing the amount
deducted for returns and allowances
Sales discount - Answers - A cash discount on sales taken by a customer
point-of-sale terminal - Answers - a computer used to collect, store, and report all the
information of a sales transaction
Terminal summary - Answers - The report that summarizes the cash and credit card
sales of a point-of-sale terminal
Wage - Answers - The amount paid to an employee for every hour worked
Salary - Answers - A fixed amount of money paid to an employee for each pay period
Payroll - Answers - The total amount earned by all employees for a pay period
Withholding allowance - Answers - a deduction from total earnings for each person
legally supported by a taxpayer, including the employee
Tax base - Answers - The maximum amount of earnings on which a tax is calculated
Payroll register - Answers - An accounting form that summarizes the earnings,
deductions, and net pay of all employees for one pay period
Employee earnings record - Answers - A business form used to record details of an
employee's earnings and deductions
Automatic check deposit - Answers - Depositing payroll checks directly to a bank
account
